What Are Good Industrial Relations - Essay Example

What are "Good" Industrial Relations? Introduction Industrial relations take place in a given industry between employees and employers, including relations between trade unions themselves, unions and the state, and between employers and the government. They can also be defined as a part of management concerned with the manpower of the enterprise, whether it is machine power, skilled power, or managers. Industrial relations involve efforts to create workable solutions between conflicting objectives and values, between incentive and economic security, discipline and industrial democracy, authority and freedom, and between bargaining and cooperation (“Industrial Relations”, 2012). They not only affect the interests of labor and management but also the economy addressed by the government. They denote matters such as the right to organize, freedom of association, and collective bargaining and arbitration between various levels of the economy (Sivarethinamohma, 2010). As seen in the above definitions, industrial relations are chiefly the relations between employers and employees, reflecting the outcome of human resources management. Their main emphasis is to accommodate the interests of other parties and maintain a harmony through problem solving between employers and employees. Industrial relations are governed by policies, rules, regulations, agreements, mediations, acts and awards concerning workplace and working community. They are influenced and shaped by trade unions through collective bargaining. Industrial relations are conducted most effectively when unions and employers make their own voluntary arrangements. The problem of industrial relations is dealt with at the organization level, the industry level, and the national level (Sivarethinamohma, 2010). Characteristics of Good Industrial Relations Good industrial relations result from the employer-employee harmony in an organization. They are shaped by rules and regulations, so that a harmonious coexistence between the parties involved could be established. The government has a role to play in shaping the laws, rules, agreements, and awards. The employers and employees, on the other hand, must use their skills and methods to adjust and cooperate with each other, since industrial relations involve employees and their firms, employers and their organizations, and the government. Industrial relations are designed to enhance production and productivity, reduce employees’ turnover and absenteeism among workers, and encourage them to increase productivity. They also provide a healthy atmosphere at workplaces by avoiding stoppages, go-slows, and strikes. The interests of labor and management are both protected through the development of mutual understanding and confidence (Barbash & Barbash, 1989). In addition, industrial relations promote socialization among industries and uplift the economic status of workers by increasing their salaries and wages. Trade unions are developed and encouraged in the aim of improving the strength of workers. Creative trade unions also reduce conflicts and safeguard the interests of workers and the management. The major participants in industrial relations are the management, the state, and the workers and their organizations (trade unions). The focus of employees is mainly on their personal characteristics, educational qualifications, skills, and attitudes towards work. The relationship between management and workers, especially the ways managers employ their skills in managing human resource, are also looked at. The role of the government depends on the choices made by employees. Theories of Industrial Relations Industrial relations analysts have described three major theoretical approaches that are different in explaining and analyzing relations at workplaces. These are pluralist theory, unitarism, and radical perspectives. Each one provides a unique understanding of relations at workplaces and therefore, uniquely interprets factors such as conflicts, the role of trade unions, and work regulation (Barbash & Barbash, 1989). The Pluralist Theory In pluralists’ perspective, the organization is made of two prominent and different subgroups, each having its own goals, leaders, and legitimate loyalties. In a nutshell, the two groups are the owners and trade unions. However, the role of management is more of persuasion and coordination and less of enforcing and controlling. Trade unions present themselves as representatives of employees. In an organization, disagreements between managers and employees over the distribution of profits are common and unavoidable. Hence, conflicts are resolved by collective bargaining. Conflicts are not perceived as negative things and are, therefore, solved through a process of mutual accommodation to bring about a positive change. Good managers believe that conflicts are a part of management and should resolve them through agreed procedures. Since conflicts are inherent to organizations, it is viewed that collective bargaining is vital in maintaining good relations between workers and employers. The implication of this theory is that there should be personnel specialists to advise managers on matters of staffing, union consultation, and negotiation. External mediators should also be involved in the solving of disputes, and union recognition should be encouraged and given adequate scope to carry out their duties. Experts of pluralist theory claim that an enterprise is a coalition of different interests’ embodiment for a common goal; these different interests must be maintained in equilibrium. When industrial jobs become more rewarding, the employees become integrated in the wider society, and the frequency of strikes minimizes. The aim of pluralism is to combine social stability with adaptability and democracy, since the running of a comprehensive enterprise lies in the hands of the managers. Shareholders, employees, and customers stand to gain when conflicts are resolved and lose when the groups conflict. Directors and mangers should evaluate the parties in conflict in order to promote the welfare of the enterprise. Critics of pluralist theory argue that equality is totally non-existent. The theory recognizes the inevitability of conflict as well as the equality between the parties in conflict. Inequalities facilitate integration and, therefore, pluralism must accept that inequalities exist in the society. Also, disorderly and undesirable industrial conflicts may promote integration under some circumstances (Flander, 1965). Unitary Perspective In Unitarianism, the perception is that an organization is united and peaceful when management and employees share a common purpose, emphasizing mutual cooperation. Loyalty of employees is demanded and trade unions are perceived unnecessary. Conflicts are disruptive in this case and result from protagonists, conflicts of interests between individuals, and communication barriers. In short, all employment units are considered cohesive, each member striving to accomplish a common goal. There is usually one source of authority that is recognized and accepted without query. Conflict is an abnormal thing, and no need for unions is perceived. Unitarism involves human resource approaches (Barbash & Barbash, 1989). Marxist/Radical Perspective It is concerned with the relationship between labor and capital and is based on class conflict. The assumption is that the conflict between employers and employees lies with the structure and nature of the society. Conflicts are unavoidable and trade unions are seen as a response to exploitation of workers by the capital elites. Industrial relations are tantamount to power struggle whereby the price paid for labor is determined by confrontation between labor and capital. The capitalists’ desire is to buy labor at the cheapest price for the aim of maximizing profits. Marx asserts that capitalism will foster monopolies, since differences in power and material wealth emerged from capitalist economic system. Simply put, the conflicts result in political revolution and overturn of societal norms. Economics and political issues cannot be separated. The Marxist approach only takes the relations between capital and labor into account. However, it is not comprehensive (Barbash & Barbash, 1989). Industrial relations are concerned with science building, problem solving, and ethics. In science building, industrial relations seek to understand employment issues; in problem solving phase, they seek to design policies that enhance the employment issues, while in the ethical phase, they contain strong normative principles that guide workers in the employment issues. In contrast to mainstream economic theory, employers have more bargaining power than employees. Conflict is part and parcel of employment relationships. When labor markets are perceived as imperfect, employment relationships include conflicts of interest. In this situation, managers cannot be relied upon to serve workers’ interests or prevent them from being exploited. Institutional interventions are then sought to improve the working conditions and protect workers’ rights. This work will focus on Flanders’s pluralism theory, which views employment relationship as comprised of shared values and conflicts of interest (Laurie, 2005). At the workplace, pluralists fuel grievance procedures, employee voice mechanisms like labor unions and work councils, collective bargaining, and labor management partnerships. They also campaign for a reduction in income laws, professional well being and safety standards, global labor standards, trade regulations, and social policies. These institutional interventions are geared towards balancing the employment relationships to promote economic efficiency as well as employee equity and voice. When workers are dissatisfied at work, industrial disputes arise if the cause of the dissatisfactions is not eliminated. The industrial disputes lead to industrial unrest and industrial relations are negatively affected. In order to maintain healthy industrial relations, all efforts must be made to avoid those disputes. Grievances also arise from the dissatisfaction of employees. A grievance is any dissatisfaction, discontent, or feeling of injustice in connection to one’s employment situation brought to the attention of the management. These can be false or imaginary, valid or invalid, but they all affect the industrial relations. Proper attention is required for finding out practical solutions and adopting appropriate grievance redressed procedures (Richard, 1975). Among many factors, industrial peace is very essential for continuous and steady development and growth of industries. Industrial peace involves the lack of industrial chaos and creation of a harmonious relationship between employers, employees, and trade unions. In this peace, they are entitled to working together to meet their economic and social goals. Workers have come to realize that their demands can only be met if they resort to the concerted, cooperative, and collaborative actions while their employers know that they can resist their demands. This denial often leads to dissatisfaction and even causes violent actions on the employers’ part. The overall result is conflicts and disputes, a situation that definitely adversely affects the production and harms both workers and employers. Ways and methods of solving industrial disputes differ from country to country depending on its economical, political and social structure. Efforts have continued to be made to adress the growth of industrial disputes and conflicts. The principle followed in conflict resolution is to eliminate conflict from lose-lose to win-win emphasis. To achieve the best solutions, there should be a clear identification of the underlying causes and sources of conflicts. In the event of conflicts of interest, collective bargaining will be successful through compromise. Conflicts due to day to day grievances can be resolved by making collective agreement or employment contract. Some of the methods of settling industrial disputes include collective bargaining, investigation, mediation, conciliation, voluntary arbitration, and adjudication (Sivarethinamohma, 2010). Collective bargaining has been adopted by trade unions to reconcile their conflicting interests. Investigation is usually done by a board of governors or a court appointed by a government to investigate into the matters concerning the conflict without the consent of the conflicting parties. Mediation involves a third party, which brings together the conflicting parties to find out a better solution for terminating the conflict. The parties are aware of the mediator. In conciliation, the aim is to bring together the views of the parties to settle their differences in a peaceful manner. They are persuaded to arrive at a mutually acceptable agreement. Voluntary arbitration implies that the parties who are incapable of removing their differences together can agree to submit their dispute to some impartial arbitrator, who makes a decision that binds them together. In adjudication, the unresolved conflict is settled legally (Richard, 1975). Conclusion With the increasing establishment of business enterprises ranging from small ones to large industries, there is a need for proper relationship between employers and employees to accomplish the set objectives. With poor working relations, the goals cannot be actualized and profit cannot be maximized. Even outside the realm of business, conflicts usually arise and cannot be avoided. It is, therefore, the responsibility of managers to secure peaceful environment at workplaces. The rise of human rights activists has also continued to ensure that employees are treated as human beings worth of respect. Good industrial relations foster unity, peace, and confidence among the parties involved for the proper realization of their potential. References Barbash, K., & Barbash, J. (1989). Theories and concepts in comparative industrial relations. Carlifornia: University of South Carolina Press. Flander, A. (1965). Industrial relations: What is wrong with the system? London: Faber and Faber. Laurie, J. (2005). Management and Organizational Behavior. FT: Prentice Hall. Richard, H. (1975). Industrial Relations: A Marxist Introduction. NY: Macmillan. Sivarethinamohma R. (2010) Industrial Relations and Labor Welfare: Texts and Cases. Ney York: PHI Learning. Industrial Relations (2012). Retrieved from http://train-srv.manipalu.com/wpress/?p=107634 Read More